Boston, MA 05/27/2014 (wallstreetpr) – Mall-based specialty retailer of casual apparel and accessories, Aeropostale, Inc (NYSE:ARO) announced a narrower adjusted loss for the first quarter than the Street analysts’ expectations. However, the year-over-year loss was wider, as revenues dipped along with the fall of comparable store sales.
1Q Results
Aeropostale Inc (NYSE:ARO) suffered a net loss of $76.8 million or a loss of 98 cents a share for the latest quarter compared to a net loss of $12.2 million or a loss of 16 cents a share in the year earlier quarter. The results included some unfavorable charges impacting it. However, on an adjusted basis, the loss for the first quarter of 2014 was $41.1 million or a loss of 52 cents a share. On average, analysts expected a loss of 72 cents a share.
Net sales fell 12.5% to $395.9 million from $452.3 million in the previous year quarter. Comparable store sales dropped 13% on top of a 14% fall in the year-ago quarter. Net revenues from its e-commerce unit skid 18% to $34.3 million from $41.9 million during the period under review.
Its gross margin slipped to 18.8% from 22.4% in the year earlier quarter as cost of sales dipped only 7.26% compared to the overall sales drop of 12.5%. Similarly, operational costs towards selling, general and administration fell only 2.05% to $119.45 million from $121.94 million in the year-ago quarter. As a percentage of sales, S,G&A grew to 30.17% from 26.96%.
Outlook
Looking ahead, Aeropostale sees operating loss of $49.0 – $54.0 million translating the loss per share between 55 cents and 61 cents for the second quarter. Street analysts’ predict the company to incur a loss of 59 cents a share for the period.
Aeropostale Inc (NYSE:ARO)’s CEO Thomas Johnson said that it is focusing on its initiatives to transform into a Aeropostale brand and build up for future growth drivers. It is also on its way to achieve a comprehensive cost cutting program.
